Wednesday, May 11, 2011

Thank you Nevada Geothermal Power (NGP.v), yours might be my all-time favourite news release

Oh this is sheer wonderfulness in a box with wrapping paper and pink ribbons. Please click through on this link and read it all because my little synopsis coming up does it no justice whatsoever, but we must say something here for the record so let's just sum up the paragraphs:

Paragraph 1: Hi everybody! We're here to give you an update on company doings!

Paragraph 2: We're great and because of the state of the world, geothermal power is great, too!

Paragraph 3: We got some really cool properties.

Paragraph 4: We got all the cash we need to do what we want to do in 2011. That's cool, too.

Paragraphs 5 and 6: Oh yeah, by the way. Our main cool property, the one that's supposed to be running at 45MW net. It's like...errr...we can't get it running at over 35MW and is likely going to lose output gradually, too. Because of that we're not going to make enough money to pay back the loans we took out. Because of this, we're going to have to re-finance and we need to put the flagship up as collateral too. Also, the main chunk of the new financing to get us out of hock is going to be a big ass dilution, so you might think the company is in trouble but that's nothing compared to what we're doing to you, suckaz!

Paragraphs 7 and beyond: But not to worry! We got some really cool development properties, too. Here's a cool list of them!

And what happened to the stock once the news hit today? Take a look for yourself:

And before you ask, yeah it was around midday.
Yeah, really.

But Wait! There's More! Guess who the chief pumper of this disaster area is? Yup, it's that man again, step forward Marin Katusa of Casey Research!

Would you buy a used car from... (etc)?

Wowsers, another Katusa Krush™ to his name, with dozens of pump pieces from this scam merchant extolling the virtues of NGP.v late last year, including Top Pick recos at conferences in January 2011 and purple prose quotes like....
"We put Nevada Geothermal, Ram and Magma as buys because they're run by excellent people. They're undervalued compared to a year ago."
"The beauty of Nevada Geothermal is that not only is it going to be growing these projects, but also President and CEO Brian Fairbank and his team are very good and very well respected on the technical front. They built the plant and will increase production on Faulkner."
Yeah, they're so good that they can't get their 49.5MW plant running at over 35MW....knock 'em dead, Brian. And before the wrap-up and big denouement, let's just check on those Katusa undervalued geotherm plays run by excellent people,, and and how they've been getting on:

Well, the good news is that is only 43% down year-over-year. The bad news.....

Oh, one more thing. Don't worry about Marin losing out on this disaster stock pick of his, cos he's already made his wedge. This because it was Marin Katusa's placement vehicle KBH Capital (that he runs with two other Casey Research scamsters, Joe Hung and Marc Bustin) that arranged the $10m private placement for NGP.v back in September 27th (just before his megapump began in public circles, dontcha know) and he pocketed a cool half a million in cash as well as a million warrants priced at 50c. So fear not, Marin isn't the bagholder here...that's you.